NAIJAFEED

Monday, August 19, 2024

Nigeria Owes State Oil Firm $4.9 Billion Fuel-Subsidy Debt

Nigeria owes its state-owned oil company almost half of what it plans to collect in revenues this year for a gasoline subsidy it reintroduced in August.

Nigerian National Petroleum Corp. is owed 7.8 trillion naira ($4.9 billion) by the government in subsidy debts for the seven-months to July, according to NNPC’s Chief Financial Officer Umar Ajiya. The government aims to collect 19.4 trillion naira in revenue this year.

The subsidy that was withdrawn in May last year by Nigeria’s President Bola Tinubu to help repair the state’s finances after debt-service costs jumped to 96% of revenues was reinstated to allow measures to be introduced that could cushion Nigerians from spiraling inflation that’s at 33%.

The government will allow NNPC to offset about 2.2 trillion naira it owes the state against the subsidy debt, Ajiya said in an interview after the company announced its results in Abuja, the capital.

The government accumulated the debt to the NNPC because it is the sole importer of gasoline, which it resells to marketers at below market cost to keep prices low. A liter of fuel sells for about 617 naira at the pump at NNPC retail stations in Lagos, the commercial capital, compared with more than a 1,000 naira in neighboring countries, fueling cross-border smuggling of the product.

The state-oil company recorded an annual profit of 3.3 trillion naira in 2023, compared with 2.55 trillion naira a year earlier. It plans to invest $6.6 billion in its operations this year, which will be largely borrowed, Ajiya said.

It foresees crude and condensates production increasing to 2 million barrels a day by year end from an average of 1.75 million barrels per day in August, helped by improved security to combat oil theft, said Oritsemeyiwa Eyesan, executive vice president of the company’s upstream division.

By Ruth Olurounbi, Bloomberg

Video - Nigeria, Equatorial Guinea sign gas pipeline agreement

Under the terms of the deal, the pipeline will transport gas from Nigeria to Equatorial Guinea, where it will be processed at the country's facilities before being sold to power companies and industrial users in the region. President Nguema Mbasogo said the gas pipeline deal is vital for Africa's development.

CGTN

Video - Nigeria confirms 39 mpox cases since start of 2024

Nigeria is on high alert as authorities confirmed 39 mpox cases across 33 states since January. The government said it had intensified surveillance and contact-tracing to contain the outbreak. Diagnostic protocols are also in place to identify new cases promptly, with vaccination plans under consideration for high-risk populations.

CGTN

Elon Musk Acquires Land In Nigeria To Construct Starlink Ground Stations

Elon Musk’s internet company, Starlink, is making significant progress in Nigeria by planning to establish ground stations across the country, aiming to enhance connectivity for millions of Nigerians.

BMA understands that Starlink has acquired approximately 29,000 acres of land in Lagos, Ogun, and Rivers states to develop these facilities.

The ground stations will be in strategic areas such as Okun Ajah in Lagos State, Sagamu in Ogun State, and Port Harcourt in Rivers State. Construction is already underway in Okun Ajah, with completion expected by the fourth quarter of 2024. The remaining locations are projected to be operational by 2025.

In collaboration with Equinix, a leader in data centre solutions, Starlink is building these ground stations to strengthen its presence in Nigeria. Equinix entered the Nigerian market in 2022 after acquiring MainOne, a prominent data centre and connectivity provider, in a $320 million deal.

These ground stations, also known as Gateways, are crucial for Starlink’s satellite-based internet service. They communicate with Starlink satellites orbiting the Earth, facilitating data transmission between the satellites and the internet backbone on the ground.

By establishing local ground stations, Starlink aims to bypass international data centres, potentially reducing latency and improving internet performance for users in Nigeria, offering faster, more reliable internet services for both individual users and businesses.

Starlink entered the Nigerian market in 2022 after obtaining various licenses, including an Internet Service Provider (ISP) license from the Nigerian Communications Commission (NCC), a Sales and Installation license, and an International Gateway license. The company has rapidly become the third-largest ISP in Nigeria as of the first quarter of 2024, indicating its significant impact on the country’s telecom sector.

Despite higher costs compared to local ISPs, Starlink has experienced a customer surge driven by its satellite service’s ability to provide connectivity in areas with poor internet coverage. With the completion of its ground stations, Starlink is set to further solidify its position as a major player in Nigeria’s telecom landscape, offering a new standard for internet connectivity across the country.

Broadcast Media Africa

Musk’s Starlink to disrupt ISP market as hope rises for 25m unserved Nigerians

Nigeria police working to secure release of 20 kidnapped medical students

Nigerian police and security agencies are working to secure the release of 20 medical students who were kidnapped in the eastern part of the country, officials say.

The medical students were on their way to an annual convention when they were abducted in Benue State on Thursday evening, police and university sources said on Saturday.

The Federation of Catholic Medical and Dental Students said in a statement that the students were travelling to the convention in the city of Enugu when they were taken.

Fortune Olaye, the secretary-general of the Nigerian Medical Students’ Association, said 20 medical students from two universities, as well as one doctor travelling with them, had been kidnapped.

It added that there had been a ransom demand in return for their release.

In a Nigerian Medical Association (NMA) letter to the inspector general of police, posted on the social media platform X, NMA secretary-general Benjamin Egbo said 12 of the abducted students were from the University of Jos and eight were from the University of Maiduguri.

One of the students managed to share their location, indicating that they were in the Oglewu Ehaje area in Benue State, the letter said.

“The Nigerian Medical Association is deeply concerned for the safety and well-being of these future medical professionals,” it added, saying that swift and decisive action to secure their return was “crucial”.

The kidnapping was also confirmed by Catherine Anene, public relations officer for police in Benue State.

Hyacinth Alia, governor of Benue State, said in a statement that he had “directed security agencies in the state to intensify efforts and ensure the safe release” of the students.

The national police said in a statement that it had ordered the deployment of “advanced helicopters and drones, as well as the use of specialized tactical vehicles to facilitate the search and secure the safe return of the victims”.

The kidnapped students were reportedly travelling from the northern part of the country in a convoy of two buses when the incident occurred, Nigeria’s This Day newspaper reported.

The students were abducted on the road near the town of Otukpo, less than 150km (93 miles) from Enugu, which often witnesses attacks and kidnappings.

Cases of kidnapping have increased significantly in Nigeria due to a severe economic crisis which is pushing more people towards crime. However, official figures are unreliable as many cases are not reported.

In 2022, a law was passed banning payments to kidnappers – but many families say they feel they have no choice but to cough up the ransoms demanded.

Nigerian consultancy firm SBM Intelligence said it had recorded 4,777 cases between May 2023, when Bola Tinubu assumed charge as president, and January 2024.

Al Jazeera

Seven dead, 100 kidnapped after attack in northern Nigeria